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IM beats estimates by a penny

Ingram Micro Inc. (NYSE: IM) posted second-quarter earnings of $51.7 million, or 35 cents a share Thursday, besting First Call's prediction by a penny.

Shares in the world's largest technology distributor were up 11/16 to 33 Thursday morning, below a 52-week high of 54 5/8.

Sales were $6.8 billion, growing 37 percent over last year's second-quarter net sales of $4.96 billion. Net income excluded $2.1 million in costs for reorganization efforts, and compare with net income of $55.6 million, or 37 cents a share for the 1998 quarter. Operating income improved 20 percent, as operating expenses fell to 3.79 percent of sales.

Consolidation in the distribution industry has helped giants such as Ingram Micro, which won a 5-year, $10 billion contract with Compaq Computer Corp. as the PC maker slashed its number of distributors to four from 39.

Ingram Micro also added resellers during the quarter, including Software Spectrum Inc., Elcom International Inc. and Unisys Corp.

Santa Ana, Calif.-based Ingram Micro also beatestimates by a penny in the first quarter. The company is covered by 14 analysts polled by Zacks Investment Research, 9 of whom consider it a "moderate buy."